Tesla Ex-Human Resources Worker Must Arbitrate Race Bias Claims

Tesla Inc. defeated a Black human resources business partner’s bid to keep her discrimination lawsuit in court after she failed to show an arbitration agreement she signed was unenforceable.

The former employee was off-base in arguing that she was exempt from arbitration under the terms of the Federal Arbitration Act because she was a “transportation worker,” the US District Court for the Central District of California said. She showed “absolutely no basis” for finding she fell under that exception and it wasn’t enough that Tesla sells electric vehicles around the US, the court said.

The FAA exception is narrow and ...